Eclipse Metals to divest Northern Territory uranium projects The...

Eclipse Metals to divest Northern Territory uranium projects


The structure of the deal will allow Eclipse to focus on its mineral prospecting efforts in Greenland while retaining exposure in the Northern Territory.





Eclipse Metals Ltd (ASX:EPM) is divesting its Ngalia Basin and Liverpool uranium projects in the Northern Territory after executing a binding Heads of Agreement with Oz Yellow Uranium Limited.

But it’s not the end for Eclipse’s presence in the Territory. The company intends to maintain exposure to these projects through its shareholding and board representation in Oz Yellow.

The deal will see Oz Yellow Uranium launch a bid to raise at least A$20 million to list on the ASX. Eclipse will receive 60% of all fully paid ordinary shares in Oz Yellow once it lists, and half of these will be distributed to Eclipse shareholders in proportion to their holdings.

The Oz Yellow agreement comes with a $2 million top-up offer to allow Eclipse shareholders to acquire further Oz Yellow shares above the initial allocation. Eclipse is to also receive $255,000 in cash and a 4% net smelter return (NSR) royalty.

This proposed divestment and Oz Yellow listing will result in the creation of a project-specific explorer with requisite funding and resources to develop the NT projects.

Future pathways


The sale will allow Eclipse to focus on its mineral prospecting efforts in Greenland. The company is repositioning its assets to allow it to go full steam ahead into the Ivittuut Project in the southwest of the country. The deal with Oz Yellow forms part of this strategy.

“The successful divestment of Eclipse’s non-core uranium assets will be a significant step forward to our strategy that will allow the company to focus its resources – both financial and technical – on key assets in Greenland and Australia," executive chairman Carl Popal said.

“By divesting these assets into Oz Yellow, Eclipse will be able to focus its energies towards our key Australian and Greenlandic assets while retaining significant exposure to a company that will be solely focused on the development of an exciting suite of uranium assets in the Northern Territory.”

“The divestment will deliver to Eclipse a significant shareholding and board representation in a cashed-up entity that has the sole focus of exploring and developing uranium exploration ground in the Northern Territory. We believe that this will be an extraordinary opportunity to maximise shareholder value in this long-held asset.”